China Automobile top gainer in morning trade
KUALA LUMPUR, Jan 30 – The share price of newly-listed China Automobile Parts Holdings Ltd climbed on Bursa Malaysia this morning, emerging as a top gainer as the counter surged 54.41 per cent as at 10.25am.
The counter chalked up 37 sen to RM1.05 against its initial public offering (IPO) of 68 sen. It then moved between 80 sen and RM1.28 with 103.501 million shares changing hands.
The automobile chassis components manufacturer made its debut on the Main Market of Bursa Malaysia today.
Inter-Pacific Research Sdn Bhd, Head of Research, Pong Teng Siew said the research company has put a less aggressive valuation on the stock because China-based companies quiet usually attract a low single-digit price earnings ratio (PER).
“We placed a six times PER on the stock,” he told Bernama.
Commenting on the price movement, Pong viewed the situation as traders taking advantage of the stock.
“It is common for investors to make a quick buy and sell again in the first day of trading. But China Automobile’s share price movement is unusual for a China-based company,” he said. – Bernama